What Qualifies as a Medical Deduction?

What Qualifies as a Medical Deduction?

With COVID upon us and tax season coming up, you may be wondering if you can get any tax money back for all those dizzyingly exorbitant medical expenses you may have had. The answer, as it is with so many tax questions, is “it depends.” The deductibility of your medical expenses depends on: Whether your medical expenses exceed the “AGI floor” (more on that below)Whether you itemize your deductionsThe types of medical expense(s) you have incurred We’ll tell you right now that, sadly, unless you’ve had a major medical expense in 2020, you will likely be unable to deduct any…
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Impact Payments and Your Taxes

Impact Payments and Your Taxes

In early 2020, many Americans received Economic Impact Payments, also known as stimulus checks*. These checks were issued in accordance with the Coronavirus Aid Relief and Economic Security (CARES) Act as a way to cushion against the economic impacts of COVID-19. * We’re aware that these payments were electronic funds transfers for many Americans, but we’ll keep using the word check, as it is often called. Side note: Of course another check was approved and then issued in early 2021. This one had different income limitations: Single people earning up to $75,000 will receive $600 and married people earning up…
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Federal Taxes Are Not a Tax Deduction

Federal Taxes Are Not a Tax Deduction

Do you remember the IRS mantra for determining if a business expense is deductible? We’ll give you a hint: it’s the acronym RON. Business expenses are deductible if they’re Reasonable, Ordinary, and Necessary. Reasonable is a bit of a judgment call, but a good way to think of it is to consider the amount of money spent. Ask yourself honestly if you’re spending extra money because you consider it an investment in your business, or if you’re just trying to get a bigger tax deduction. Ordinary is easier to determine. Are your competitors in the same industry spending “about” the…
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